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Conduct Risk & Assessments

What is Conduct Risk?

  • The FCA has not defined the term conduct risk – it is up to firms themselves to decide what their conduct risks are and make sure they have effective procedures to ensure good conduct
  • Firms are required to rely on their understanding of what good conduct looks like by following the FCA’s statutory objectives of Consumer Protection, Market Integrity and Effective Competition
  • Conduct risk is a form of business risk that refers to any action that has an adverse effect on market stability or customers fair treatment
  • It’s the firm’s responsibility to understand what conduct risk means in their context and ensure all employees, management and board in addition to all entities are aware of the definition

What should you do and how can we help

  • The FCA expects firms to be planning now ahead of the 2023 deadline
  • Our team has experience in assessing company wide policies, procedures and operations, advising and assisting firms in finding efficient, business positive, compliant approaches to regulation
  • Contact Seven for a discussion on how we can audit your current approach and assist you in meeting the conduct rules